Case Study Tesco Exists South Korea

Added on - 21 Apr 2020

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Running Head: CASE STUDY- TESCO EXISTS SOUTH KOREATesco exists South KoreaCase study
Case Study2ContentsIntroduction...........................................................................................................................................3Drivers of Globalisation........................................................................................................................3Consumer Demand............................................................................................................................3Rapid economic Growth....................................................................................................................4Easing of government regulations.....................................................................................................4Strategic Partners...............................................................................................................................4VUCA in context of Tesco case study...................................................................................................5Volatility............................................................................................................................................5Uncertainty:.......................................................................................................................................5Complexity........................................................................................................................................5Ambiguity..........................................................................................................................................5Analysis of growth and performance.....................................................................................................6Joint Venture.....................................................................................................................................6Localizing Stores...............................................................................................................................6Supply Chain Management................................................................................................................6Strong Branding................................................................................................................................7Tesco exists from South Korea..............................................................................................................7Conclusion.............................................................................................................................................8References.............................................................................................................................................9
Case Study3IntroductionTesco PLC is a British multinational grocery and a merchandise retailer, founded in 1919by Jack Cohen in London. It is considered as the third largest retailer in the word as per itsprofits. Tesco is listed on London Stock Exchange and is an integral part of the FTSE 100Index(Tesco plc, 2017). In 1999, Tesco entered South Korea as a joint venture, partneringwith Homeplus, a unit of Samsung Corporation. Within a few years, it had achieved themarket leadership and became the most successful international retailer. It operated a hugenumber of supermarkets, hypermarkets and also convenience stores. Doing business in SouthKorea proves to be the most successful international business of Tesco in terms of revenue.Although gaining success in South Korea, Tesco decided to exit from it because of thechanges occurred in the operating environment of Korea due to the laws passed by theKorean government and the loss of market share in UK. This report contains an analysis ofthe globalisation drivers, growth and performance of the company and the reasons for the exitof the company.Globalisation and InternationalisationGlobalization refers to the integration of many national economy into one global economy. Itrefers to the interaction of people through international flow of money and easy migration(Baylis, Owens and Smith, 2017).Internationalisation means the increasing involvement of firms and enterprises in theinternational markets. It refers to increasing international relations, trade, alliances among thenations(Collinson, Narula and Rugman, 2017).Drivers of GlobalisationThere are many key factors which are responsible for the growth of globalisation knownas drivers of globalisation. These drivers directly or indirectly affect the industry’sperformance. The main drivers are cost drivers, market drivers, competitive drivers andtechnological drivers. The globalisation drivers which became the reasons for Tesco’sexpansion and exit from South Korea are consumer demand, rapid economic growth, easingof government regulation and strategic partners(Dobbs, Manyika and Woetzel, 2016).Consumer Demand: One of the main globalisation driver is demand of the customer, onthe basis of which every company runs its business. Tesco expanded its business by operatingaccording to the demand of the Koreans and their way of living. The company localises itsstores and products and use such formats which attracts a large number of people. It opens its
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